Reference no: EM131841350
Question - Ken Stone launched a new business, Ken's Maintenance Co. that began operations on June 1. The following transactions were completed by the company during that first month:
June
1 K. Stone invested $120,000 cash in the business.
2 Rented a furnished office and paid $4,500 cash for June's rent.
4. Purchased $2,400 of equipment on credit.
6. Paid $1,125 cash for the next week's advertising of the opening of the business.
8. Completed maintenance service for a customer and immediately collected $750 cash.
14. Completed $6,300 of maintenance service for First Union Center on credit.
16. Paid $900 cash for an assistant's salary for the first half of the month.
20. Received $6,300 cash payment for services completed for First Union Center on June 14.
21. Completed $3,500 of maintenance services for Skyway Co. on credit
24. Completed $825 of maintenance service for Comfort Motel on credit.
25. Received $3,500 cash payment from skyway Co. for the work completed on June 21.
26. Made payment of $2,400 cash for the equipment purchased on June 4.
28. Paid $900cash for an assistant's salary for the second half of this month.
29. K. Stone withdrew $2,000 cash for personal use.
30. Paid $120 cash for this month's telephone bill.
30. Paid $525 cash for this month's utilities.
A partial list of account titles used includes: Cash; Accounts Receivable; Equipment; Accounts Payable; K. Stone Capital.
Required
a. Prepare journal entries for each transaction.
b. Post each transaction to the appropriate ledger accounts (use T format)
c. Prepare a trial balance dated June 30, 2012.